Rate cut possible only if inflation eases: Rajan

With reference to Anup Roy's report, "Inflation leaves no room for rate cuts, says Rajan" (August 30), the Reserve Bank of India's (RBI) Annual Report for 2015-16 continues to lay stress on reining in inflationary tendencies in the economy even as achieving that remains a challenge.

Ghosh also highlighted several demands and concerns of RBI as a reason for joining the strike. He pointed out three areas of importance, from RBI's perspective. Iranian oil minister Bijan Zanganeh on Friday said his country wanted its share of the crude market to return to levels seen before Western nuclear sanctions were imposed on it 13 years ago.

"The short-term macroeconomic priorities of the Reserve Bank continue to be to focus on bringing down inflation towards the government-set target of four percent", RBI Governor Raghuram Rajan wrote in the foreword to its annual report published on Monday.

Retail inflation shot up to almost two-year high of 6.07 per cent, while the one based on wholesale prices soared to a 23-month high of 3.55 per cent in July. Creative search for new management teams, including the possible use of public sector firms or private sector agents, is necessary, as are well-structured performance incentives such as bonuses for meeting cash flow or profit benchmarks and stock options, he said.

"Certainly, the reluctance to lend to industry and small businesses is more visible among the more stressed public sector banks compared to the private sector banks", he said.

"Not only does weak corporate investment reduce the volume of new profitable loans, their stressed assets have tightened capital positions, which may prevent them from lending freely", Rajan said. However, consumption demand led by a good monsoon, government wage increases as a result of the award of the Seventh Pay Commission and overall economic pick-up should help the economy register gross domestic product growth of 7.6 per cent in 2016-17, up from 7.2 per cent a year ago. With final demand picking up, capacity utilisation is likely to increase, and so will investment.

Additionally, it is imperative that banks improve operational efficiency of stressed assets and create the right capital structure so that it works out for all stakeholders.

According to him, one of the critical components of the medium term strategy in the financial sector will be to strengthen the public sector banks in all aspects, including governance, cost structure, and balance sheets.

On the Monetary Policy Committee, Rajan said: "This will be a welcome step forward in strengthening the transparency, continuity, and independence of monetary policy".

  • Clinton proposes plan to address mental health treatment

    Clinton proposes plan to address mental health treatment

    Her plan would increase federal support for suicide prevention, including on college campuses. Not all mental health advocates are pleased with Clinton's plan.

    Ireland Set To Appeal Apple Decision

    On the other hand, the Irish finance minister, Michael Noonan has said the government will appeal any negative finding, the report notes.

    Sandoval camping for National Park Service's 100th birthday

    The free-admission days are among 16 free days scheduled throughout the centennial year. But nature lovers prevailed and today it is the C&O Canal National Historical Park.
  • Peace talks due to start in Myanmar

    Peace talks due to start in Myanmar

    Additionally, civil society organizations and the private sector should offer vocational trainings for short-term results. Despite this geographical proximity, cross-border contacts among ordinary people are relatively insignificant.

    French official: Calais border deal with UK must be changed

    Home Office maintains that it has a good relationship with France on immigration and protecting the Calais border. Mr Elphicke claimed it would be a big mistake to enable people to apply for United Kingdom asylum from France.
    Michael Phelps put a name to his famous Phelpsface: Future

    Michael Phelps put a name to his famous Phelpsface: Future

    The 23-time Olympic gold medalist presented at the MTV VMA's on Sunday night, where he threw praise towards the Atlanta rapper. Phelps said that it was Future's song " Stick Talk " that helped power him to a grand total 23 gold.
  • Ariana Grande gets inked with Mac Miller

    Ariana Grande gets inked with Mac Miller

    She shared this sideways Polaroid of her getting the work done on Instagram with the caption: "I think this is my 13th". The pair began as friends when they collaborated on her 2013 single "The Way" - even smooching in its video .

    Brazil didn't mess up Games, nor did it make most of them

    The yin and yang Olympics, one of stark contrasts between the feats on the field and regrettable actions off it. Kevin Durant scored 30 points and helped the Americans rout Serbia 96-66 for their third straight gold medal.

    Cleveland Browns vs. Tampa Bay Buccaneers - 3rd Quarter Game Thread

    In the first two preseason games against the Jaguars and the Eagles, the Bucs offense did not score until the third possession. He had a rough week in practice, too, missing two field goals and getting booed by fans attending a Browns-Bucs joint practice.
  • Justin Bieber is back on Instagram after a 2-week break

    Justin Bieber is back on Instagram after a 2-week break

    And Justin soon fired back: "It's amusing to see people that used me for attention and still try to point the finger this way. There were also plenty of Selena Gomez fans that took the opportunity to compare Bieber's ex with his current girlfriend.

    Spotify fights against exclusives after Frank Ocean album drops on Apple Music

    The new September 10-dated chart (where Blonde bows at No. 1) will be posted in full to Billboard's websites on Tuesday, Aug. 30. The album delivers a sensation of familiarity because it has a very cohesive feeling to it, similar to "Channel Orange".
    Mr. Fuji, WWE Hall of Famer, Dies at 82

    Mr. Fuji, WWE Hall of Famer, Dies at 82

    In total, Fujiwara accumulated five WWF Tag Team Championship reigns; three with Professor Toru Tanaka and two with Masa Saito. As a manager, he was known for being notorious ring side and having a trademark of throwing salt in his client's face.